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Prevailing Wage Distribution


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Can someone take a distribution on Prevailing Wage when they are under Age 59 1/2 as an Inservice Withdrawal - currently working at the company?  I have seen in the past Empower allows it but the plan doc only allows in-service for over age 59 1/2.  Thanks.

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If the document says No. Then the answer is No. 

Just because something is possible, doesn't mean the specific plan in question allows it. 

Plenty of things can be accommodated by vendors, or by the tax rules, etc. doesn't mean the plan permits it. 

I'm a stranger on the internet. Nothing I write is tax or legal advice. 

I'd like a witty saying here, but I don't have any. When in doubt, what does the plan document say?

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You also have to remember that if the Prevailing Wage contribution is used to offset other employer contributions - such as safe harbor contributions, any distribution restrictions that apply to the contribution type being offset must be applied.

If the prevailing wage amount is not offsetting a restricted contribution, the otherwise applicable distribution criteria could be drafted into the plan (ie the 2 yr/5 yr rule).

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